Business Reporter
LOCAL banks are struggling to exhaust the US$20 million offered for take up on the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction platform in what signifies the availability of sustainable ZWL float in the economy.
A trading update released by the RBZ Auction this week shows that out of a whooping US$20 million disbursed on the Wholesale Auction platform where local banks purchase foreign currency for onward selling to their clients, only US$17,3 million was taken up.
Market watchers believe that the trend is clear testimony that the ZWL supply in the market remains constrained and within sustainable margins.
The official rate remained stable trading at ZW$5 774,27 against the greenback, a premium it has sustained for most part of the year’s second half.
On the Retail Auction platform , a grand total of US$2,1 million was allotted with priority being tilted towards supporting productivity related needs.
To this end, Raw materials received US$866 444, Machinery and Equipment US$586 565, Consumables US$113 022, Services US$298 514, Retail and Distribution US$200 761, Pharmaceuticals and Chemicals US$28 937 among others.
